How to banish debt NOW: Financial adviser reveals her simple 'hit list' strategy for getting rid of 'toxic' credit card and home loan bills for good

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A leading financial adviser who has coached hundreds of clients out of major debt has revealed how you can pay off your credit card bill and home loan bills for good.

Canna Campbell, from Sydney, said while credit cards are not bad per se, 'dirty nasty toxic debt' is harmful to your overall financial profile and spoils your chances of money success.

'I have a hit list strategy to help people get out of credit card debt,' Canna said in a recent YouTube video on the subject.

'I see credit cards as being like carbs. If you have excessive carbs, you end up feeling bloated, sluggish and lethargic and you put on some weight. But when you have the right type of carbs, it can give you optimum energy. 

'You need to make sure you use your credit card - and carbohydrates - wisely.' 

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A leading financial adviser who has coached hundreds of clients out of major debt has revealed how you can pay off your credit card bill for good (Canna Campbell pictured)

1. Get organised

The very first thing Canna said you need to do in order to rid yourself of credit card debt is get organised:

'Grab a piece of paper and a pen and write down every organisation or person or company that you owe money to and exactly how much you owe them,' Canna said.

Once this is done, organise your debt from the smallest figure to the largest figure, making sure the first is the smallest sum you need to repay.

'Put a minimum repayment plan in place for every single debt each month,' Canna said.

This can be as small as $1 and might not feel like much, but it means your debts are 'quarantined' and can't get any larger.

Once this is done, get rid of your credit card so you can't accumulate new debt.

The very first thing Canna said you need to do in order to rid yourself of credit card debt is get organised by writing down every single debt and how much you owe that person (pictured)

Once your plan is in place, you need to set yourself a budget you can stick to which means you never have to resort back to a credit card, Canna (pictured) said

2. Devise a budget

Once your plan is in place, you need to set yourself a budget you can stick to which means you never have to resort back to a credit card.

'Teach yourself how to stick to a budget and make sure your budget includes all of the minimum repayment plans you need to make every month,' Canna said.

Then, live off cash so you never live outside your means.

3. Think outside the box

Thirdly, Canna explained that you need to come up with something on the side that can make you extra money.

Whether it's selling off some old items, taking up a weekend job or side hustle, babysitting, dog walking, house sitting or online market research, anything that can bring in extra cash is a good thing.

'You might even be able to take on additional projects or up your hours at work,' Canna said.

The moment you come up with some extra money, Canna (pictured) said you need to start paying down your debt and transferring it as a lump sum to the person at the top of your list

4. Start paying down your debt

'The moment you come up with some extra money or savings from your side hustle, no matter how small it is, transfer it as a lump sum to the person at the top of your list,' Canna said.

'Do this as soon as possible so you're not tempted to spend it.'

Once you've done this, make a note of how your debt is coming down, and once one repayment has been made in full, cross it off your list and move on to the next person.

'Doing this helps to focus all of your energies on the debt in hand,' Canna explained.

'When you have lots of debt, it's kind of like juggling lots of balls. And if you have lots of balls in the air, you're more likely to drop a ball.

'It's important to get as many balls out of the air as possible when you're settling debt, as this will make it easier and less overwhelming.' 

The financial adviser revealed this technique has worked with hundreds of her clients, many of whom have paid down $100,000+ in credit card bills. 

5. Constantly monitor your debts

Keep an eye on your debt and how it's coming down and always make a note of the new total once you've paid something off, Canna said.

'The moment you tick someone off your list, make sure you increase the debt repayment plan for the rest of the debts and continue doing this until you're debt-free,' the financial adviser revealed. 

Keep an eye on your debt and how it's coming down and always make a note of the new total once you've paid something off, Canna (pictured) said

6. Don't repeat history

The final step of the 'hit list strategy' is never repeating your debt-riddled patterns of old.

The simple way to do this is to use the habits you've learned to pay off your debt to build up some savings. 

'All regular monthly repayment plans and side hustles should now go towards building up your savings, so that if anything happens out of the blue, you never need to lean on a credit card,' Canna said.

That way, you'll always feel secure in the knowledge that you have money behind you, if something bad happens. 

To find out more from Canna Campbell, you can visit her YouTube page here. You can also follow her on Instagram here.